Technical Paper: Aviation Sector Multiplier

We estimate that the output multiplier for the Malaysian aviation sector currently stands at 2.0 times. This means that every RM1 of output produced in the sector generates RM2 in the economy.

Given the issues and challenges related to calculations of multiplier effects presented in our Technical Paper, we recommend that any multiplier estimations presented to the Malaysian Aviation Commission should be accompanied by the following:

Accurate definitions of the multiplier in question, whether it refers to Gross Domestic Product (GDP), output, or employment, as well as the year and location which the multiplier refers to.

Sources for the data utilised in the estimations, whether from official statistics, proxied by other data, or primary research.

The methodology employed in estimating the multiplier, whether based on an Input-Output (I-O) table, or other methodology. This should also include details of assumptions employed as well as calculations that can be reproduced by other parties.